The second “European Directive on Payment Services in the Internal Market”, commonly referred to as PSD2, has sparked discussion around its potential to further develop the European payments market. Speaking to PaymentEye, Christian Schaefer, Head of Payments, Cash Management Corporates, details how PSD2 will deliver these opportunities from its effective date in January 2018.
Along with extending the scope of services over which it will regulate, PSD2 will also strengthen customer authentication protocols. But arguably of most interest is the fact that PSD2 will permit select third party providers (TPPs) to deliver specific kinds of payment-related services. For Schaefer, this notable development recognizes “the importance of third-party providers to the payments landscape – creating a regulatory framework that enables secure collaboration between all players, and encourages innovation”.
As a result, it is believed that PSD2 marks a crucial step towards a more integrated payments industry that better leverages opportunities to innovate. Schaefer says: “PSD2 will encourage collaboration between the varied players across the financial landscape by recognising and regulating third-party providers – creating a secure and transparent environment for the creation of disruptive payments technology.”
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